Apex court not happy with tax collection

CJP observes that corruption could be eliminated by streamlining the system of revenue collection.

LAHORE: Iftikhar Muhammad Chaudhary, the Chief Justice of Pakistan (CJP) on Monday observed that corruption could be eliminated by streamlining the system of revenue collection and making the process of tax collection easier.

The CJP said this while presiding over a full bench that was hearing dozens of identical appeals filed by the Income Tax commissioner against various commercial units that had been granted tax relief by the Lahore High Court (LHC) on account of the fact that the notice issued by the department did not fall within the ambit of the relevant law. For the appellant, Muhammad Ilyas Khan contended that the LHC had passed the order without issuing notice to the Income Tax department. The Supreme Court, however, did not find the LHC order barring the department from issuing fresh notice to the respondents a ‘relief’. The bench remarked that the LHC orders only meant that the commercial units had a right to appeal and that their appeals would be admitted for regular hearing. The bench said that the LHC notices did not grant tax relief to the appellants.

Justice Khalilur Rehman Ramday, while commenting on the performance of the Federal Board of Revenue said, “The body has gobbled up billions and while it has army of tax collectors, its performance is below par.” “Nothing reaches the national exchequer,” Justice Ramday observed.

The bench adjourned further hearing until the first week of February, 2011.

Published in The Express Tribune, December 21^st, 2010.